With These New Apps, You Can Finance Almost Anything at Checkout

On-demand financing apps mean you can skip the credit card.

Consumers are becoming more accustomed to making decisions on the fly — and that includes financing what they buy in a store or online. With two credit financing apps, one from U.K.-headquartered Divido and another from payment processing company Square, even buyers with no access to credit cards can quickly spread payments over a longer period of time through an application on their smartphone.

This alternative financing option is becoming more widely appealing. Customers can take the merchandise home immediately rather than using layaway plans where they can’t have the items until the final payment is made. The result is increased buying power that can be especially helpful during the upcoming holidays.

Compare These On-Demand Financing Options

With apps like Square Installments and Divido, you get financing via the app at the point of sale. The app covers the payment in full so you can walk away with your purchase, and then you pay installments through the app.

Here’s how these on-demand credit financing apps compare:

DividoSquare Installments
How It WorksUses marketplace model that lets lenders compete instantly for any consumer or business that applies for creditShort mobile application process with basic information requirements filled out
Interest RateVaries by purchase and lender used; options for 0% interest on certain purchasesRates from 0% to 24% based on financing time, credit and other factors
TermsTerms vary based on the lender chosen from the marketplace, including varied financing terms and feesNo deferred interest or prepayment penalties; can use on qualifying purchases between $250 and $10,000 for three-, six-, or 12-month financing options
AvailabilityOver 1,000 partners offer B2C and B2B financing at checkout in the U.K., Germany, France, Spain, Italy, the Nordics and the U.S. with more countries to possibly be added in 2019 Available to customers at Square sellers in 22 states; can be added to Square Invoices for B2B applications to offer financing to clients  

Read: 5 Best Credit Unions for Personal Loans

Divido has reported that a retailer using its financing option claims to have experienced significant increases in revenue. Because the model pays retailers immediately for each sale, taking the repayment risk off the retailer’s shoulders, this financing option could spread to more retailers in the near future and provide buyers with more choices above and beyond credit cards to effectively manage spending and payments.

Click through to read more about how to make money while using your credit card.

More on Loans

We make money easy. Get weekly email updates, including expert advice to help you Live Richer™.